Base metals prices are stable, gold and crude oil prices are rising, and traders are keeping a watch on US CPI and Fed meeting notes

The bullish trend in the bullion pack and crude oil persisted in the commodities market, while most base metal prices declined last week. The favorite asset class for investors at the moment is still yellow metal. Comex spot gold price soared to a brand-new 52-week high of $2032 per ounce, and for the week, the price closed higher by 1.96% at $2007 per ounce. In the meantime, domestic gold prices hit a new lifetime high of Rs 61,000 per 10 grams on the MCX. Crude oil prices registered a third straight weekly advance in the energy sector. OPEC and its alliance’s unexpected production cut as well as a drop in US oil stockpiles suggested a tight market outlook, driving up NYMEX WTI crude oil prices last week by 6.65%.

Following a string of disappointing macroeconomic data from the US, base metals prices experienced a fall amid persistent worries about global economic development. It was the eleventh consecutive month that central banks made net purchases of gold, adding 52 tonnes more to their reserves in February. For the month of February, China was the main buyer. The banking crisis increased demand for gold, which led to net inflows into physically backed gold ETFs in March the first inflows in ten months.

The price of silver on the Comex increased for a fourth week in a row, rising by 3.65% to $24.97 per ounce. The weekly settlement price for MCX Silver May futures was higher by 3.26% to Rs 74570 per kilogram. Speculators upped their net-long silver positions by 8,661 to reach 19,493. Since nine weeks, the net-long position has been the most bullish. The results of this week’s Fed meeting minutes and US CPI will both have an impact on bullion prices. On the technical front, with a focus on the daily chart, gold continues to have a strong short-term bias, and the RSI is in an overbought position. We anticipate a healthy pullback in Comex spot gold prices between $1980 and $1960 per ounce.

The uptrend will restart after the price crosses $2032 per ounce, but the trend will continue to be favorable as long as the price holds above the $1935 level. Supports and resistance levels for Comex gold are $1980 and $1935 per ounce, respectively. Supports and resistances for the MCX Gold June futures are set at Rs 59,700 and Rs 59,080 per 10 grams, respectively. Silver on the Comex Spot has support at $22.80 per ounce and resistance at $26.40 per ounce. For the coming week, the MCX Silver May futures prices may encounter resistance around Rs. 75,400/77,000 per 1 kg and find support at Rs. 73,100/71,780 per 1 kg.

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